Performance management is central in the workplace as it provides a benchmark for managers and
supervisors to measure employee performance. Performance management is also imperative to enable
managers determine if employees can meet organizations objectives. Performance measurement is a
practice or collecting, analyzing and reporting individual performance in an organization. It encompasses
studying company�s processes to determine if the business processes output are in line with the
company�s objectives (Bititciet al., 2012 pg 306).
The purpose of this paper is to come up with the most appropriate Performance Measurement Approach
to be employed by Paychex, Inc in assessing account executives. On the same note, the paper discusses
the notion that developing good relationships within the industry is paramount for the success of Paychex,
Inc.
How would a results approach to measuring performance build relationships?
A results-based approach to measuring performance to a large extent results in the creation of
effective working relationships. This is especially so where team work is desired in achieving set
objectives. Kuzu and Özilhan (2014, p. 1371) notes within any organization, people and
departments need to complement each other in order to promote the overall goal of the
organization. In order to achieve good results and thus score well in terms of performance,
employees must be willing to create better relationships with their colleagues and thereby reap
from mutual benefits that may arise from these relationships including knowledge sharing and
other inter-departmental links (Kuzu and Özilhan, 2014, p. 1371-1372). It would be impossible
for an individual to perform exceptionally by themselves and colleagues play an important role
in determining the final outcome.
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The result based approach requires that the management constantly follows up on employee
performance in order to determine whether set objectives are being met. Through such
interaction, important matters including any challenges facing employees in their bid to achieve
results can be discussed (Eisenbeiss, Knippenberg and Fahrbach, 2015, p. 635). Furthermore,
result-based approach tends to alienate employees from their supervisors because managers are
mostly interested with the results and managers must therefore proactively seek to maintain a
good relationship with employees in order to promote performance outcomes.
In terms of external stakeholder relationships, the same quest to achieve impressive results
applies as in the case of internal relationships. Kumar, Heide and Wathne (2011, p. 1) note that
creating a good relationship with external stakeholders including customers, suppliers and peer
organizations is beneficial for any profit-oriented business. A good relationship with customers
for example ensures that an organization is the preferred choice among competitors and thereby
this maintains its profitability level. It also ensures that products are tailored to meet customer
needs. This is in line with Paychex Inc’s strategic plan which aims to give the best for its
numerous customers in order to maintain its market. Good relationships with organizations in the
same industry on the other hand ensures that employees can learn from each other and bring in
additional expertise; which may play a significant role in enhancing performance (Kumar, Heide
and Wathne, 2011, p. 3 – 4). In order to get better results and promote their performance,
employees at Paychex Inc are likely to build better relationships. In line with Paychex’s strategic
plan, Paychex relies on multiple partnerships to fuel its business and external relationships are
thereby vital in promoting performance.
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Reference list
Kuzu, Ö, & Özilhan, D 2014, ‘The Effect of Employee Relationships and Knowledge Sharing on
Employees’ Performance: An Empirical Research on Service Industry’, Procedia – Social And
Behavioral Sciences, 109, 2nd World Conference on Business, Economics and Management, pp.
1370-1374, ScienceDirect, EBSCOhost, viewed 22 June 2015.
